No. of Recommendations: 12
Costco Wholesale Corporation (COST) announced on Tuesday that its board declared a special cash dividend of $30 per share. The special dividend is payable December 4, to shareholders of record as of the close of business on November 24. The total amount of the payment will be approximately $13.3B.
The retailer started paying special dividends in December 2012 with a one-time payout of $7 per share, which cost about $3B. After that, the company paid $5 per share in February 2015 and $7 per share in May 2017. In November 2020, the board declared a $10 per share special dividend, and the largest one so far was the $6.7B payout in January 2024.
seekingalpha.com - Costco gains after announcing its first special dividend in almost three yearsNot a fan of these special dividends, which comes with a tax bill of 18.8% for me. And the stock will trade down ex-dividend by almost that amount. And special dividends don’t attract those seeking high regular dividend yields. I hope Berkshire never does this.
